January 26, 2024

Second Session of the 113th

Tennessee General Assembly Begins

People look down from the gallery at House Speaker Cameron Sexton during the first day of legislative session at Tennessee State Capitol in Nashville, Tenn., Tuesday, Jan. 9, 2024.

PHOTO: Nicole Hester / The Tennessean

On Tuesday, January 9, 2024, legislators gathered to gavel in the second session of the 113th Tennessee General Assembly. The session started off with the adoption of rules and the House and Senate Finance Ways and Means Committees receiving tax revenue briefings from Jim Bryson, Commissioner of Finance and Administration.

Bryson indicated that the tax revenues have been leveling off with a possible overall decrease of just under 3%. As well, there appears to be a legal risk to current franchise tax assessment on property. As a result, proposed legislation has been filed that would remove the property measure and authorize the Department to issue refunds to taxpayers who have paid property-based franchise taxes.

Bryson indicated that the base budget would not be reduced but it may impact any proposed increases. TICUA made a visit to Governor Lee’s office in December to support the THEC/TSAC budget improvement request or the Tennessee Student Assistance Award. The $35 million recurring improvement is designed to support financial needy students impacted by the federal changes to the FAFSA. The tax revenue forecast, however, puts this request at risk. More will be known when Governor Lee presents his budget request during the State of the State address on February 5, 2024.  

Winter Storm Slows Start to Session

Billie, a beagle-mix, leads the way for owner Brandon Crooks of Nashville as they walk near the Tennessee State Capitol after a winter storm in Nashville, Tenn., Monday, Jan. 15, 2024.

PHOTO: Denny Simmons / The Tennessean

The statewide winter storm that hit Tennessee during the week of January 14th brought the legislature to a halt. State offices were closed and lawmakers were unable to make it to Nashville to conduct business. As a result, bills were not being filed at their normal rate.

The legislature returned this week and began drafting a flurry of bills due to the pending bill filing deadline at the end of next week. Unfortunately, this has resulted in more filing of caption bills than usual. These measures open a certain section of the Tennessee Code but await an amendment to reveal the true intent of the measure. TICUA is creating a watch list of bills, but in many cases, it is difficult to know their proposed impact until amendments are filed later in the session. To date, TICUA is monitoring several bills addressing diversity measures on campuses, student aid, artificial intelligence, and higher education data systems.